Former Union Agriculture Minister and NCP supremo Sharad Pawar met Prime Minister Narendra Modi right here on Saturday to lift his apprehensions concerning the formation of Cooperation Ministry and the amendments in Banking Regulation Act.
Pawar urged Modi to make sure that the co-operative rules laid down within the Structure shouldn’t be sacrificed on the altar of over-zealous rules in banking sector.
He stated the Banking Regulation Act has been amended to guard the pursuits of the depositors of co-operative banks and to strengthen the co-operative banks by rising professionalism, however there are specific inconsistencies and the ensuing authorized inefficacy of normative provisions of the Act which can be in battle most particularly with the 97th Constitutional Modification, State Co-operative Societies Acts and with the co-operative rules.
He stated the newly-introduced impugned provisions of sections 4A, 4F, 4G, 4J, 4L, 4M and 4Q of the Modification Act immediately intervene into the functioning of the affairs of the co-operative banks. “Due to this fact I opine that the stated impugned provisions are unconstitutional and extremely vires, for having been handed with out legislative competence,” he stated.
He stated such sections of the Act are past the legislative competence of the Parliament and subsequently void underneath Article 123(3) of the Structure. “The Amended Act overrules numerous provisions of the Co-operative Act in regard to the formation of the Board and election of Chairman, appointment of Managing Director and so on. by holding a caveat by way of such appointments,” Pawar stated in a letter to Modi.
“I reiterated within the letter that the goals and aims of the Amended Act are well-intentioned, and plenty of provisions are crucial. Erring Board and Administration should positively be acted upon strictly and the depositors’ pursuits must be protected, however on the similar time it must be ensured that whereas doing so, the Co-operative Ideas laid down within the Structure usually are not sacrificed on the altar of over-zealous regulation,” Pawar stated within the letter.
